First time I tried, the USB stick contained an installation of USB server and I wanted to start over again. However, it complained about partioning.

Removed all the partitions from the stick and tried again, hoping that the installer would help me out with partioning... But now the USB stick did not show up at all...

Created one partion NTFS on the USB stick and tried again but the only "automated" alternative I get for installing is to overwrite or add Ubuntu to my HDD which already contains Windows, something that I do not want...

Do I need to manually create partions on the stick in the installer? Which partitions should I create? The USB stick is 8GB and the machine that I will test it on has 8GB memory.

Another thing to mention here is that if you want Ubuntu 12 on a USB and if you are going to use the Ubuntu's Startup Disk Creator, make you use Ubuntu 12, because if you use Ubuntu 10, you'll have problems. Same goes with Ubuntu 10, make sure you have Ubuntu 10 if you are going to make a Ubuntu 10 USB disk.